The beleaguered Adani Group announced on Wednesday that it would be canceling its latest offering of shares and refunding investors.

On Wednesday, a day after Adani Enterprises announced it had secured full investor subscriptions to a follow-on public offering of $2.5 billion, the beleaguered group reversed course, halting its public offering and cutting all proceeds. has issued a statement that it will return to investors.

The shocking turnaround comes eight days after Hindenburg Research published a 100-page report on the Adani group, denouncing it as a fraud.

“Given the unprecedented circumstances and current market volatility, the company aims to protect the interests of the investment community by returning the FPO. [Follow-on Public Offering] Gautam Adani, Chairman of Adani Group, said in a written statement: “The Board would like to take this opportunity to thank all our investors for their support and our commitment to his FPO.”

Adani Enterprises’ first fundraising effort announced in November was thrown into chaos on January 24 when Hindenburg Research published a 100-page report. The report alleges Adani Group has committed accounting fraud and a years-long conspiracy to enrich its principals through equity. market manipulation. Adani Group denies Hindenburg report, threatens lawsuit against US investment firm

Abu Dhabi’s IHC investment firm closed the sale with a last-minute $400 million investment, reportedly with a phone call tweak by Gautam Adani himself. His two other Indian magnates, paint mogul Sajjan Jindal and telecommunications billionaire Sunil Mittal, also economic times and the financial times It cited a source familiar with the matter. Other investors included Goldman Sachs and London-listed Jupiter Asset Management, according to The New York Times and Financial Times.

Minutes before Adani Group announced it had canceled its offering, forbes reported that two firms allegedly associated with Adani, Elara Capital and Monarch Networth Capital, were the underwriters of the transaction, raising questions as to whether Adani Group principals purchased the shares in the public offering. increase.Adani Group has not responded forbes Request for comments.

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